Correlation Between Microbot Medical and AMBRA SA

Can any of the company-specific risk be diversified away by investing in both Microbot Medical and AMBRA SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Microbot Medical and AMBRA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Microbot Medical and AMBRA SA A, you can compare the effects of market volatilities on Microbot Medical and AMBRA SA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Microbot Medical with a short position of AMBRA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and AMBRA SA.

Diversification Opportunities for Microbot Medical and AMBRA SA

0.36

Correlation Coefficient

Microbot Medical  AMBRA SA

Weak diversification

The 3 months correlation between Microbot and AMBRA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and AMBRA SA A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMBRA SA A and Microbot Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Microbot Medical are associated (or correlated) with AMBRA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMBRA SA A has no effect on the direction of Microbot Medical i.e., Microbot Medical and AMBRA SA go up and down completely randomly.

Pair Corralation between Microbot Medical and AMBRA SA

Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.05 times more return on investment than AMBRA SA. However, Microbot Medical is 1.05 times more volatile than AMBRA SA A. It trades about 0.17 of its potential returns per unit of risk. AMBRA SA A is currently generating about 0.05 per unit of risk. If you would invest  81.00  in Microbot Medical on October 4, 2024 and sell it today you would earn a total of  27.00  from holding Microbot Medical or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Microbot Medical  vs.  AMBRA SA A

Microbot Medical

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

AMBRA SA A

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AMBRA SA A are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AMBRA SA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Microbot Medical and AMBRA SA

The main advantage of trading using opposite Microbot Medical and AMBRA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, AMBRA SA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AMBRA SA will offset losses from the drop in AMBRA SA's long position.

The idea behind Microbot Medical and AMBRA SA A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.